Utilization of Village Funds in Community Empowerment Efforts

Saudi Journal of Economics and Finance Abbreviated Key Title: Saudi J Econ Fin ISSN 2523-9414 (Print) |ISSN 2523-6563 (Online) Scholars Middle East Publishers, Dubai, United Arab Emirates Journal homepage: http://saudijournals.com/sjef/

Original Research Article

Utilization of Village Funds in Community Empowerment Efforts (Study in Tewah Pupuh Village, Benua Lima District, East Barito Regency) Rini Agustina1*, Hary Supriadi2, Andi Tenri Sompa3

1,2Master Program of Science in Development Administration, Lambung Mangkurat University, Indonesia 3 Department of Government Science, Faculty of Social and Political Science, Lambung Mangkurat University, Banjarmasin, Indonesia

DOI: 10.36348/SJEF.2019.v03i10.001 | Received: 26.09.2019 | Accepted: 03.10.2019 | Published: 14.10.2019

*Corresponding author: Rini Agustina

Abstract

The Village Fund is one of the government policies that began in 2015, which seeks to place villagers as actors in village development and community empowerment in order to improve community welfare. The use of Village Funds is prioritized 80% for development and 20% for community empowerment. This research is a descriptive qualitative research oriented to describe the relationship between variables that influence the emergence of phenomena. The analysis tool used in this study is CIPP (Context, Input, Process, Product). The results showed that the utilization of the Village Fund for Community Empowerment was not on target. Village Funds contribution is dominated by apparatus or honorarium expenditure. In terms of context, data collection activities are not yet optimal in terms of community needs. From the input aspect shows that the identification of the strategy is not optimal so that the goal is not achieved. From the aspect of the process, the low participation in the management of the Village Fund and from the aspect of the product, has not yet reached the goal of utilizing the Village Fund. Based on these results, the government of East Barito Regency through the Regional Apparatus Organization related to the Village Fund policy can carry out training on Village Fund management for the village head and village apparatus and related institutions in the village so that the utilization of the Village Fund can improve the welfare of the village community. Keywords: community empowerment, village development, village funds. Copyright @ 2019: This is an open-access article distributed under the terms of the Creative Commons Attribution license which permits unrestricted use, distribution, and reproduction in any medium for non-commercial use (NonCommercial, or CC-BY-NC) provided the original author and source are credited.

INTRODUCTION concerning Villages. Village rights and obligations are Research Background clearly and clearly regulated in the Law. The village has Based on Law No. 23 of 2014 concerning the right to regulate and manage the interests of the Regional Government, the implementation of regional community based on the rights of origin, customs, government is directed to accelerate the realization of social and cultural values of the village community, community welfare through improved services, determine and manage village institutions and get a community empowerment and enhancing regional source of income. competitiveness by taking into account the principles of democracy, equity, justice and the uniqueness of a The village is obliged to protect and maintain region in the system of the Unitary State of the the unity and harmony of the village community within Republic of Indonesia (Homeland). Referring to the the framework of national harmony and the integrity of administrative authority that is smaller than the local the Republic of Indonesia. This is related to improving government is the village. The village is a the quality of life of rural communities, developing representation of the smallest legal community that democratic life, developing empowerment of rural grows and develops as an inseparable part of the life communities and providing improved services to the structure of the Indonesian people as the spearhead of community. In realizing the establishment of a village development and improvement of people's welfare. government that is supported by adequate sources of funds. The presence of village autonomy, the village is Recognition of the existence of villages is expected to be able to organize governance accommodated in Law Number 23 of 2014 concerning independently, from by and for the people, has the Regional Government and Law Number 6 of 2014 initiative and prioritizes the participation of local © 2019 |Published by Scholars Middle East Publishers, Dubai, United Arab Emirates 445

Rini Agustina et al., Saudi J Econ Fin, Oct 2019; 3(10): 445-452 village communities [10]. But generally the obstacles concerning the Establishment of the Katingan Regency, faced by the village government to realize the Seruyan Regency, Sukamara Regency, Lamandau development and empowerment of rural communities Regency, Gunung Mas Regency, Pulang Pisau are related to budget constraints. Regency, Murung Regency Raya and East Barito District in the Province of Central Kalimantan. The Village Funds are funds sourced from the State total area of East Barito Regency is 3,834 KM2 or 2.5% Revenue and Expenditure Budget (APBN) which are of the area of Central Kalimantan province which intended for villages and traditional villages that are covers 10 (ten) districts, 3 (three) villages and 101 (one transferred through the Regency / city Regional hundred and one villages). Revenue and Expenditure Budget (APBD) and are used to finance government administration, development, The priority for the use of Village Funds as community empowerment and society. The Village stipulated in the Regulation of the Minister of Villages, Fund aims to improve the welfare and equity of village Disadvantaged Regions and Transmigration Number 5 development through improving public services in the of 2015 concerning the Determination of Priorities for village, advancing the village economy, overcoming the Use of Village Funds is to finance village development disparities between villages and development expenditure and empower village strengthening rural communities as subjects of communities. Article 16, Government Regulation of the development [1]. Republic of Indonesia Number 60 of 2014 concerning Village Funds sourced from the State Revenue and In Law Number 6 of 2014, it is explained that Expenditure Budget, the distribution of Village Funds is the Village Fund must be managed in an orderly, carried out in stages in the current fiscal year with the obedient to the provisions of the legislation, efficient, following provisions: phase I in April by 40%, phase II economical, effective, transparent and responsible with in August by 40% and stage III in October by 20%. due regard for a sense of justice and compliance as well Based on the Regulation of the East Barito Regent No. as prioritizing the interests of the community. In order 9 of 2016 concerning the procedures for Distribution, to support the realization of good governance Determination of Details and Use of Village Funds in (governance), village management, especially related to East Barito Regency, the 2016 Budget Year prioritizes the utilization of the Village Fund, is always carried out the use of Village Funds to finance 80% development by prioritizing transparent, accountable and and finance 20% community empowerment. participatory principles. Regarding the presentation of the amount of The amount of the Village Fund allocated per the village fund, this article describes the priority of village varies according to formula allocation. Formula using the Village Fund for village development. allocation is an allocation calculated by taking into Certainly referring to the allocation of village account the number of villagers, the area of the village development that is improving the welfare of rural and the level of village poverty and the level of communities and the quality of human life and poverty geographical difficulty. Data on the number of alleviation through meeting basic needs, construction of villagers, the area of the village, the level of poverty village facilities and infrastructure, development of and the level of geographical difficulties are sourced local potential and sustainable use of natural resources from the relevant ministries and / or institutions that and the environment [9]. conduct government affairs in the field of statistics. The level of geographical difficulty is determined by factors METHODS of basic service availability, infrastructure conditions, Based on the main characteristics of the transportation and communication from village to problem, this research is a descriptive study. district. Descriptive research is a research model that is oriented towards describing the relationship between variables or Based on Ministry of Finance data, since 2015 factors that influence the emergence of a social the central government has budgeted Village Funds phenomenon that is used as an object of study [2]. large enough to be given to villages. In 2015, the Based on the analysis model, this descriptive study is a Village Fund was budgeted at Rp. 20.7 trillion with an qualitative descriptive model. The study design was average of each village getting an allocation of Rp. 280 used as an evaluation study. Evaluative research is more million. In 2016, the Village Fund budget increased to oriented to efforts to explain aspects of the benefits or Rp. 46.98 trillion with an average of each village results of an activity to be input for further getting Rp. 628 million per village throughout improvement activities. The type of data used in this Indonesia including 101 villages from East Barito study are primary data (including: interviews and District. observations) and secondary data (documents or physical data in the form of Village Income and East Barito Regency is one of the autonomous Expenditure Accountability Reports). In detail, the regions in Central Kalimantan which was approved as following is the presentation of the research resource an autonomous region based on Law Number 5 of 2002 table:

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No Interviewees Information obtained 1. Village Head 1. General Conditions of Village Communities 2. Village Fund Management 2. Village Officials: a. Village secretary Making a Work Plan b. Head of Affairs and Head of Section 3. Chairman of the Village Consultative Board Supervision and Coordination Function between institutions 4. Family Welfare Programme (PKK) Management Participation in Community Empowerment 5. Head of Neighbourhood/Community Community involvement in the use of Village Funds Association 6. Youth Organization Management Community involvement in the use of Village Funds 7. The community Community needs a. Traditional figure b. Religious leaders 8. Toddler and integrated health service post Village Fund Utilization Administrators 9. Elderly and integrated health service post Village Fund Utilization Administrators 10. Early childhood education management Village Fund Utilization

The location of this research was conducted at Tewah Pupuh, Benua Lima District, and East Barito Program evaluation activities are curiosity to Regency from February to August 2018. The analytical see whether the program's goals have been achieved or tool in this study was CIPP (Context, Input, Process and not [8]. If it has been achieved then how is the quality Product). CIPP is an evaluation component that of the achievement of these activities and if it has not provides benefits and contributions in implementing a been achieved then which part of the plan that has been program. Basically, the evaluation model developed by made but not yet achieved and what causes the plan has Daniel Stuffleabem helps in decision making. The CIPP not been achieved. Evaluation is an activity to gather covers several aspects as follows: Context Aspect, Input information about a program that has been determined Aspect, Process Aspect, and Product Aspect. Testing so that the information will be used to determine the the validity or validity of the data in qualitative research right choice in making a decision. The form of methods uses different terms with a qualitative evaluation in the form of recommendations for making approach [3, 4]. One aspect of truth value in qualitative decisions. The following is a description of the findings methods using reference material is supporting data to of the CIPP aspect, the dominant factors influencing the prove the data that has been found by researchers [5]. non-utilization of the Village Fund for Community Based on this to get the validity of the data in the study Empowerment, and the form of participation. used triangulation of techniques and sources. Findings from aspects of CIPP (Context, Input, RESULTS AND DISCUSSIONS Process, Product) In general, evaluation is an evaluation of the implementation of a program that has been carried out Context Aspect and will be used to predict, calculate and control the The context evaluation component in the implementation of the program in the future so that it is research on the Utilization of Village Funds in better. Thus the mission of the evaluation is the Community Empowerment efforts in Tewah Pupuh improvement or refinement in the future that will come Village, Benua Lima District is the background of the from the implementation of a program. Village Fund policy, the objectives and objectives of the Village Fund policy program sourced from the State According to Siagian [6] evaluation is the Budget (APBN). To find out the extent of the context process of measuring and comparing the results of work aspects in the utilization of the Village Fund in the that were actually achieved with the results that should village of Tewah Pupuh then first analyze the objectives have been achieved. Furthermore, Mulyadi also of the Village Fund policy with village demographics explained that evaluation is an effort to gather before and after the implementation of the Village Fund information about a program, activity or project [7]. policy. The Village Fund is a central government policy The information referred to is very important in terms set forth in Nawacita that is to develop Indonesia from of decision making, among others, to improve the the periphery by strengthening regions within the program, refine further activities, stop an activity and framework of the Republic of Indonesia. The spread the ideas that underlie a program and activities. implementation of the policy is the issuance of Law The information collected must meet scientific, Number 23 of 2014 concerning Regional Government practical, appropriate and appropriate requirements with and Law Number 6 of 2014 concerning Villages. The the underlying values in every decision making. design of the Village Fund policy is as follows:

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 The Village Fund is intended to finance infrastructure development in each neighbourhood such governance, development, empowerment and as farm roads and walkways, opening and printing rice society. fields, improving village roads Tewah Pupuh - Gumpa,  The purpose of the Village Fund is to improve the proposing the connection of local water supply utility or welfare and equitable development of villages clean water facilities, sports facilities and work skills through improving public services in the village, training for young people. advancing the village economy, addressing development disparities between villages and Input Aspects strengthening rural communities as subjects of The input evaluation component in this study village development. includes available resources and work programs. The  The Village Fund is prioritized for community input aspect relates to how the use of available empowerment and village development. resources and strategies must be considered to achieve a  Empowerment of rural communities is related to program. The input aspect has a very important role in efforts to develop independence and welfare of the the implementation of a program or policy. In utilizing community by increasing knowledge, attitudes, the Village Fund, there are several factors that are part skills, behavior, abilities, awareness and utilizing of the input aspect, namely the planning process, resources through the determination of policies, available funds and human resources, both village programs, activities and assistance in accordance officials, the community and regulations related to the with the essence of the problems and priority needs Village Fund. of rural communities.  Village development is related to efforts to improve Technically, Village Fund planning is prepared the welfare of rural communities and the quality of by the village secretary and head of planning and human life and poverty reduction through meeting financial affairs. The Village Fund planning is based on basic needs, construction of village facilities and the results of deliberations or joint meetings with all infrastructure, development of local potential and elements of the Tewah Pupuh village community. In the sustainable use of natural resources and the village of Tewah Pupuh prior to the Multi Stakeholder environment. Consultation Forum for Development Planning (Musrenbangdes), village officials first held a meeting Village demographics that describe the natural with the neighbourhood to collect data on community conditions and changes that occur in the community needs. The results of the meeting were used by village have a very important role. The assessment of Village officials to be the basis for the Musrenbangdes Fund utilization can be measured by looking at the activities, which were scheduled for the Benua Lima extent to which program objectives can be achieved. sub-district. based on the details of the 2016 Village Fund allotment in the village of Tewah Pupuh is for village The development planning process in the development and community empowerment with a village of Tewah Pupuh began with the preparation of percentage of 80% for village development and 20% for the Village Medium Term Development Plan community empowerment. In terms of context, this is in (RPMJDes), which is a manifestation of the vision and accordance with regulations that govern the priority of mission of the politically elected village head integrated using village funds. with the development of the East Barito Regency. The RPMJDes is a legal product determined through a Improving welfare, equitable village Village Regulation with a period of six years in development through improving public services in the accordance with the tenure of the village head. village, advancing the village economy, overcoming development gaps between villages and strengthening Based on the results of interviews with the communities as subjects of development are the main village head of Tewah Pupuh, in the process of drafting objectives of the Village Fund policy. Based on the the village medium term development plan, the results of the study, of the total number of 325 families, principles of community empowerment are always 201 families included in the category of underprivileged aimed at increasing community welfare and families. independence, active and direct community participation in the development process, taking sides In the context of aspects other than regulations with the community, being open in the sense of every related to the Village Fund, the vision and mission of development process. can be seen and known directly the elected village head is also the basis in preparing the by the community, accountable or can be properly Village Fund designation plan. The vision of Tewah accounted for both the district government and the Pupuh village is the development of Tewah Pupuh village community, efficient and effective in Village which is Dignified, Advanced, Evenly, accordance with the potential of natural resources and Prosperous and Fair. While its mission is to improve human resources in the local village and sustainable. and improve village administration and village officials, organize and regulate village market management,

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According to the explanation of the village problems, it is necessary to carry out training or head of Tewah Pupuh, in the process of drafting the technical guidance related to the utilization of the village medium term development plan, the above Village Fund at Tewah Pupuh. Another factor principles have been applied even though they have not influencing the input aspect is the low understanding of been maximized because it is not easy to implement regulations related to village development, especially them. The limited resources of the village apparatus is those related to the use of Village Funds. one of the factors inhibiting the maximum implementation. The Crushing Whole RPJMD is Process Aspects specifically spelled out in the Village Government The process evaluation component in this Work Plan (RKPDes) compiled through musrenbangdes study includes the procedures for implementing the activities. empowerment program and community participation in the utilization of the Village Fund. The implementation Fertilizer Musrenbangdes activities for 2016 of Tewah Pupuh village development from the Village Fiscal Year activities were carried out in 2015 attended Fund has involved the community in mutual by the village head, village apparatus, the Village cooperation. Mutual cooperation is a form of direct Consultative Body, elements of the village institution, community involvement or participation in village the head of Neighbourhood/Community Association, development where the community can see, work on the sub-district and the team from the Office of and supervise village development activities. Utilization Empowerment and Village Administration. At the of Village Funds for community empowerment cannot village musrenbang activity, 50 people were invited and yet be said to be effective. This is due to the lack of only 26 people attended or 50% attended. This shows poverty. Supervision of the management of the the low participation of Tewah Pupuh community in utilization of the Village Fund is carried out by internal village government activities. parties and external parties. Oversight from internal parties is carried out by the Village Consultative Body The Village Fund itself is village income representing the community. External oversight is sourced from the National Budget. The availability of carried out by the District, Inspectorate, the Office of Village Funds which is influenced by the area, poverty Empowerment and Village Administration and the level and geographical difficulty level is an annual Finance and Development Supervisory Agency cycle policy starting in 2015. Because the Village Fund (BPKP). is an annual cycle policy, the Village Fund management process takes place repeatedly every year. The potential Product Aspects of village government apparatus resources is very The product evaluation component in this influential in the implementation of Village Fund study is the competence of the Village Apparatus. The management. The low level of education both the purpose of the product evaluation is to assess the results education of the village government apparatus and the of the utilization of the Village Fund in Cewah Pupuh. education of the village community in general affect the Achieved or not achieved targets are assessment implementation of the Village Fund. The level of products. Evaluation of the utilization of the Village education also affects community participation, Fund is not only by measuring the suitability of the especially in the implementation of village funds, budget with the implementation in the field. How much among others in terms of decision making, has the Village Fund benefited from the product understanding of community norms, ability to solve or evaluation results. Not all people in the village of provide solutions to problems and lack of insight. Tewah Pupuh can benefit from the Village Fund. This is due to the limited amount of budget. In the input aspect, the human resource factor is a weakness or an obstacle in the utilization of the From the explanation above, it can be Village Fund at Tewah Pupuh. These weaknesses occur compiled the evaluation framework of the CIPP model in the village government apparatus and in the village in the research on Village Fund Utilization in community of Tewah Pupuh. To overcome these Community Empowerment efforts as follows:

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Indicator of No Aspect Component Aim Evaluation result Success 1. Context Policy Background: Increasing prosperity The relevance of  Compilation of 1. Law No. 23 of 2014 concerning and equitable objectives and activity documents. Regional Government. development through regulations. 2. Law No. 6 of 2014 concerning improving public Villages. services in the village, 3. Government Regulation No. 60 of advancing the village 2014 concerning Village Funds economy, overcoming Sourced from the State Budget. development gaps 4. Permendes, Development of between villages and Disadvantaged Regions and strengthening rural Transmigration No. 5 of 2015 communities as the concerning Priorities for the Use of subject of Village Funds development.

2. Feedbac Village Apparatus Resources, Activity Implementation of The existence of  Implementation of k schedule Procedures and musrenbangdes village deliberations activities activities, and other in accordance with meetings and the schedule of socialization activities. 3. Process Implementation of Community Implementation of Activity  Lack of community Empowerment and Community Community participation in Participation Programs Empowerment and activities Community  There is no increase Participation activities or decrease in 4. Product Activity Report Meeting needs There is an increase poverty in prosperity and reduction in poverty

Dominant Factors that Influence the Utilization of apparatus in managing the Village Fund caused the Village Funds for Community Empowerment community not to feel the benefits of the Village Fund which led to an increase in the welfare of the Low Potential Resources community in the village of Tewah Pupuh. Utilization The potential of village government apparatus of Village Funds is considered not optimal shown by resources is one of the important factors that must be the absence of a reduction in the number of poverty prepared in relation to realizing community welfare even though the amount of funds disbursed continues to through the Village Fund. The low performance of increase every year. village government officials such as complaints about the quality of services, ignorance and even Coordination between institutions is not yet running dissatisfaction from the community about various optimally programs is due to the low potential of village apparatus Since the enactment of Law Number 6 of 2014 resources. concerning villages, the village government has been given facilities through the Village Fund policy to run The potential of village apparatus resources village governance as a concrete form of developing itself is influenced by the level of formal education and Indonesia from the periphery. The success in realizing training/technical guidance that has been followed by the welfare of the village community is influenced by the Village Government apparatus, especially those the coordination between the institutions implemented. related to Village Fund management. The potential of In the village, the Village Consultative Body (BPD) is village apparatus resources influences the performance an institution that carries out the functions of digging, of the village government. Based on data on the accommodating, gathering and channeling the education level of the Tewah Pupuh village apparatus, aspirations of the village community. The aspirations the average formal education level is a senior high and needs of the village community will not be properly school graduate. As for the training/technical channeled if the coordination with the village guidance/outreach/consultation activities, the village government is not properly established or not in government has budgeted a sizeable nominal of accordance with the provisions. In the village of Tewah Rp20,000,000. Pupuh, coordination between institutions is more familial. The nature of this family actually leads to The suboptimal utilization of the Village Fund things that are not in accordance with the laws and in community empowerment efforts shows that the role regulations. of the village apparatus in managing the Village Fund is not yet optimal. The lack of understanding of the village

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Forms of Community Participation District has not felt the impact directly related to Community participation is an implementation the use of the Village Fund. of community empowerment. Participation is a factor  Participation in the evaluation phase that determines the success or failure of community Participation in the evaluation phase can be empowerment. The community itself is the main actor feedback on activities that have already been in community empowerment. The greater the carried out. Feedback can be either satisfied or involvement of the community in village government dissatisfied with the benefits of the program that activities, the greater the benefits that can be felt by the has been disbursed. local community and vice versa. Community participation in the use of Village Funds is not only The forms of participation of Tewah Pupuh involved in decision making but the community is also village community in the management of the Village involved in identifying problems and potentials owned Fund are as follows: by the community Vertical participation Related to community participation in the use A condition where the Tewah Pupuh of Village Funds more so that the use and management community is involved in the management of the of Village Funds can be targeted and the benefits can be Village Fund where the community acts as a felt by the community. What happened in Tewah Pupuh subordinate or invited guest to be present at the Tewah Village, Benua Lima Subdistrict, the use of Village Pupuh village meeting. Funds was not optimal involving the local community. This results in dissatisfaction and even the community's Horizontal participation ignorance of the benefits of the Village Fund and does The condition in which a group of Tewah not even affect poverty rates. The factor of the lack of Pupuh villagers participated together with another socialization of the Tewah Pupuh village government group. apparatus regarding the Village Fund Program so that many people do not know about the Village Fund. The In addition to participating in vertical and manifestation of Tewah Pupuh village community horizontal forms, the Tewah Pupuh community is also participation is illustrated in the following activities: involved in managing Village Funds in physical and  Participation in decision making non-physical forms.Community involvement in the Participation at the decision making stage was activities of building Paud buildings, building bridges, manifested in the presence of the community in making wells and making fences is a form of meetings as evidenced by the attendance list in community participation in physical form while which approximately 100 people invited were community participation in village meetings or attended by only approximately 33 people at the meetings is a form of non-physical participation. Village Development Plan Deliberation meeting.  Participation at the implementation stage CONCLUSION The manifestation of this participation in the The priority of using the Village Fund for implementation phase was direct community community empowerment aims to reduce poverty and involvement in various activities, especially those increase access to economic resources including sourced from the Village Fund. Mutual cooperation improving the quality of the village planning process, is one form of this participation. Village supporting economic activities both developed by communities are very easy with the invitation to Village Enterprises (BUM Desa) and by village work together, but from the implementation of community business groups, forming and increasing the mutual cooperation, the community does not really capacity of village community empowerment cadres, care about the program that they carried out in organizing through the formation and paralegal mutual cooperation. facilities to provide legal assistance to villagers,  Participation in the stage of receiving benefits organizing health promotion and clean and healthy Village Fund beneficiaries are people or living movements, supporting village activities and institutions that receive, manage Village Funds community forest management in the village and aimed at improving welfare. Referring to the community forests and increasing the capacity of prevailing laws and regulations that the community groups such as productive economic beneficiaries of the Village Fund are all village enterprises, women, farmers, poor people, fishermen, communities through improving public services in craftsmen, observers and protection of children, youth the village, advancing the village economy, and other groups according to village conditions. addressing development disparities between However, the utilization of village funds in Tewah villages and strengthening village communities as Pupuh Village, Benua Lima District, East Barito subjects of development with the aim of improving Regency was considered not on target. the welfare of the village community. In general, the Tewah Pupuh community of Benua Lima Reviewing the utilization of village funds is based on an analysis of CIPP aspects that show results,

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